Mountain Province Production to Rise

RAPAPORT... Mountain Province has forecast a rise in output next year amid a stabilization of demand and operational improvements at its Gahcho Kué mine.

The Canada-based miner will produce between 6.75 million and 6.95
million carats, up from the 6.7 million to 6.8 million carats it expects for 2019, it estimated. The projection for next year is higher than its earlier forecast of 6.6 million
to 6.9 million carats.

“The company’s guidance for 2020 demonstrates that the
operating margins remain healthy and the mine continues to generate free
positive cash flow, providing better leverage to fund the potential expansion
of all the assets within its portfolio,” Mountain Province CEO Stuart Brown
said last week.

Mountain Province expects to achieve the upper end of its
production forecast for 2019, and also reduced its costs during the year.

While the second half of the year was challenging, there were signs of stabilization in the market, the company noted.

“Mountain Province’s prices over its last two sales have been
positive,” Brown added.